Displacement current was introduced by James Clerk Maxwell to explain the continuity of current in a capacitor circuit where actual charge flow is absent between the plates. It is produced due to a time-varying electric field between the plates of a capacitor:
\[
I_d = \epsilon_0 \frac{d\Phi_E}{dt}
\]
where \( \frac{d\Phi_E}{dt} \) is the rate of change of electric flux.